Session objectives. Manage Process: Set direction, Set strategy, Direct Business. CIMOSA BUSINESS PROCESS MAPPING Manage Process
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1 Manage Process: Set direction, Set strategy, Direct Business Set Direction CIMOSA BUSINESS PROCESS MAPPING Manage Process Set Strategy Direct Business HR Process IT Process Develop Product Get Order Fin/Accoun. Process Maintenance Process Fulfill Order Support Product Support Process Core Process Session objectives AIRLINE BUSINESS PROCESS MAPPING By the end of today s class, students will: Be able to explain the role of business process management Be able to explain the definition of strategy Be able to explain what vision and mission are Be able to list key features of vision and mission 1
2 What is Strategy? Strategy A strategy is a course of action. The company s long-term plan for how it will balance its internal strengths and weaknesses with its external opportunities and threats to maintain a competitive advantage. Strategic management The process of identifying and executing the organization s mission by matching its capabilities with the demands of its environment. Purpose An organisation has a purpose(s) of its establishment What is the purpose of profit organisation? What is the purpose of non profit organisation? Where to go, how to go there is translated in the organisation s strategic management Strategic management Art and science of formulating, implementing, and evaluating cross-functional decisions that enable an organization to achieve its objectives. (DAVID, 2001) Terminology used: Strategic management Strategic planning 8 2
3 The vision 9 A Vision is an OBJECTIVE IMAGE shared by the founder and stakeholders that represents collective guidelines for meeting the aspirations It replies to the initial question: Where do we want to go? It reflects a desire to act in order to change the course of events and to solve concrete problems It projects the objectives into 5 to 10 years ahead 11 Is explicitly shows in the vision statement.. Vision statement answers the question: What do we want to become? Prentice Hall A general statement t t of its intended d direction that evokes emotional feelings in organization members. Copyright 2004 Prentice Hall 10 3
4 13 15 Develop a Strategic Vision and Mission First Task of Strategic Management Source : CSEP module, GML Performance A mission statement focuses on current business activities -- who we are and what we do Current product and service offerings Customer needs being served Technological and business capabilities A strategic vision concerns a firm s future business path -- where we are going Markets to be pursued Future technology-productcustomer focus Kind of company that management is trying to create 4
5 Exercise Each group, write the vision and mission of the company that they investigate If the company has no explicit vision / mission, propose them Discussion time: 10 minutes List on the board One group make a comment to the other: 20 minutes One group concludes Mission Statements Mission Statement: Enduring statement of purpose Distinguishes one organization from another in similar enterprises Declaration of an organization s reason for being Prentice Hall Ch Prentice Hall Ch Characteristics of a Mission Statement Defines current business activities Highlights boundaries of current business Conveys Who we are, What we do, and Where we are now 18 Company specific, not generic so as to give a company its own identity A company s mission is not to make a profit! The real mission OF A PROFIT ORGANISATION is always What will we do to make a SUSTAINABLE profit? 5
6 Other names for mission statements Mission Statements Statement of purpose Statement of philosophy Statement of business principles sometimes followed by corporate values Essential for effectively establishing objectives and formulating strategies Please refer again to Strategic Management Comprehensive Model Prentice Hall Ch Prentice Hall Ch The Strategic Planning cause-effect relation CAUSE & EFFECT RELATION VISION MISSION CONCRETE OBJECTIVES SPECIFIC --- ACTIVITIES (THAT REQUIRE INPUTS AND ON-GOING RESOURCES) REVISION OF THE BUSINESS --- OPERATIONAL EFFECTIVE POLICIES Establishing Objectives Represent commitment to achieve specific performance targets by a certain time Should be stated in quantifiable terms and contain a deadline for achievement Substitutes results-oriented decision-making for aimlessness over what to accomplish 22 6
7 Alternative strategies derive from Vision Mission Objectives External audit Internal audit Past successful strategies 25 Short-Range Versus Long-Range Objectives Short-Range objectives Targets to be achieved soon Serve as stair steps for reaching longrange performance Long-Range objectives Targets to be achieved within 3t to 5 years Prompt actions now that will permit reaching targeted long-range performance later Source : CSEP module, GML 7
8 Generating Strategy by Using TOWS Matrix Source : CSEP module, GML Performance Source : CSEP module, GML Generating Strategy by Using TOWS Matrix 8
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